Tenants risking shortfall

AUSTRALIA’S rental vacancy rate has tightened over the past month, leaving the nation at risk of a chronic shortage of lettable properties as homebuilding activity nears its peak, researchers say.

And while that might be music to the ears of landlords, the data also suggests that fears of price correction sparked by the glut of new homes hitting the market appear overblown.

Figures from property industry researcher SQM Research show the number of vacant homes for rent across Australia was 71,540 in August, for a vacancy rate of 2.2 per cent, down from 2.3 per cent a month earlier.

The Melbourne and Sydney markets were tight at 1.7 per cent and 2 per cent, respectively, unchanged from July.

In Brisbane, the vacancy rate was 3.1 per cent (10,893 properties) in August, down from 3.3 per cent the previous month.

SQM managing director Louis Christopher said there was “nothing in our numbers to suggest the market is about to be hit with oversupply”.

“We now have mounting concerns for significant rental shortages in 2019 in Sydney and Melbourne,” he said.